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#1.) question

#2.) question

Borges Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient dedicated machine (DM) The cost data follow General Purpose Flexible Manufacturing Dedicated Equipment (GPE) System (FMS) Machine (DM) Annual contracted units 200,000 200,000 200,000 Annual fixed cost $100,000 $250,000 $525,000 Per unit variable cost $15.00 $14.00 $13.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number) The option EMS is best when the contracted volume is between and units (enter your responses as whole numbers) The option DM is best when the contracted volume is over units (enter your response as a whole number). Borges Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle Owner Luis Borges hopes the contract will be extended and the volume increased next year Borges has developed costs for three alternatives They are general purpose equipment (GPE), flexible manufacturing syster (FMS), and expensive, but efficient dedicated machine (DM). The cost data follow Annual contracted units Annual fixed cost Per unit vanable cost General Purpose Equipment (GPE) 200,000 $125,000 $18.00 Flexible Manufacturing System (FMS) 200,000 $250,000 $14.75 Dedicated Machine (DM) 200,000 S525,000 $13 50 Based on the cost, the process that is best suited for the current contracted volume is